Negative list of service tax

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CA Brindavan Giri

Professional

49 Points Posted on 22 June 2013

Sir i have a query regarding service tax. Under the definition of service [66B(44)] transfer of title in goods by way of sale is excluded from the definition under clause (i) of Shall not include part. So this means trading of goods is not a service. So, since trading of goods is not a service then why the same has been included in the negative list under Entry 5. Why there was a need to mention the same in the negative list. In any case the results would have been same, had it not being mentioned in Negative list. And how can u exclude something which is not at all covered.

Thanks

Replies (5)

Nirav Worah

CHARTERED ACCOUNTANT

415 Points Posted on 23 June 2013

Agreed, No need to include trading of goods in negative list.

Chinnu Raj

CA Final Student B.Com

1362 Points Posted on 23 June 2013

it is just for having a better idea that trading of goods does not fall under the service tax.So it is included even in the negative list

CA Brindavan Giri

Professional

49 Points Posted on 24 June 2013

it just cannot be for the purpose of clarification as the same is very clear in the definition of service. And for clarification CBEC uses explanation or CBEC Clarifications.

Chinnu Raj

CA Final Student B.Com

1362 Points Posted on 26 June 2013

so wats d exact answer which u found my frnd???

CA. C V SURYAM

Practising Chartered Accountant

652 Points Posted on 22 June 2014

Hi friends, the difference is that by virtue of the wordings "a transfer of title in goods or immovable property, by way of sale, gift or in any other manner" u/s 65B(44) conveys a situation where both services and deemed sale are involved i.e, under WCS. Whereas under negative list, trading means pure trading where there is no deemed sale. Thus transfer of title in goods or immovable property is different from trading of goods.